IMF and WTO warn about global growth

The IMF and World Trade Organization leaders have warned about the negative impact of a reversal of globalization on the global economy, and urged diversification of supply chains. The IMF and WTO have warned about the negative impact of a reversal of globalization on the global economy, and urged smart steps to diversify supply chains rather than abandon globalization. IMF Managing Director Kristalina Georgieva said in a statement that globalization faces the biggest challenge since World War II, adding, “But we cannot let it burn alongside the currency. We cannot pull the plug on the trade that makes us better.” WTO President Ngozi Okonjo-Iweala said in a statement that they estimate that if the global economy were to split into two blocs, this would lead to a 5 percent decline in global GDP in the long run.